What is the right price? The price has to be sold several times

By
Real Estate Agent with William Pitt Sotheby's International Realty CT RES.0783448

The right for a house  is hard to come by these days. The price has to be sold a few different times:
-To the homesller. The home seller has to determine what they think they can realistically get from their property within a timely manner. The seller has to feel they are getting enough money for them to move on to intise them to even put their home on the market. If they don't feel they can, they will either postpone their move or try to rent out their home.
-The listing agent: When I list a house, I want to make sure the house can sell, not only so I can help my clients move on with their life. A home will not sell if the house if the home is marketed at a value above market value. I invest considerable time and money making my listings, and if the price the homeowner wants to set the price to high, I have to make a decision whether it is worth it for me to even take the listing. I have turned away listing opportunities when the seller just wants or needs considerbly more than what the market will dictate.
-Buyer's Agents: When the house hits the market, buyer's agents will see the house the mls. They will look at the pictures and information, and they will form their own opinion quickly if the house is priced right or not. If it is priced right, they will contact their clients to inform them on the new listing. Also, if the buyer's are interested, they will search for comparable sales to see if the home is priced right.
-Buyer's: They are owns that determine how much the house is worth. They look at comparable sales and maybe adjust for things, if there are no similiar sales. If they feel the house is too high, they might not even look at the house or after looking at the house, keep an eye on it to see if the price would come down. They often deduct any repairs or upgrades they feel the house needs from the asking price if they make an offer. If you don't offer enough money, the sellers might not even counter office.
-Appraiser: If we come to any agreement on the purchase price, terms and conditions, the house passes building, then the appraiser is sent out to determine what the house is worth for bank, for buyers requiring a mortgage. Sometimes cash buyers put a contigency of having the house appraise as part of their offer. The appraiser measures the home, takes pictures, observes any updates and special features and notes any obvious safety issues. They go down to town hall to see what is in the file. They then pull their own sales, note any market conditions or any issues that could have an effect on the market value of the subject property and make adjustments. They then take all of this information and come with a dollar value. If the price is lower than the sales price that is agreed upon, often times buyers will try to renegoiate the price down to the apprasied value.

What does this mean to you?
Think long and hard about pricing your home. If you go to high, you will miss the market. I have never seen sellers price their home too low for the market, unless their home needs substainally renovation and the sellers are extermly motivated.   

Posted by

Jonathan Hall-Realtor Serving Greater Danbury & Candlewood Lake with William Pitt Sotheby's International Realty
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This information is provided by Jonathan Hall,Realtor  with William Pitt Sotheby's International Realty in the Greater Danbury & Candlewood Region of CT. For additional information, please call him at 203-417-0523,203-796-7700X305 or email me at danburyrealestate@gmail.com . Unless indicated, all content is the property of Jonathan Hall. If you would like to use any of this information, please contact me for permission. He is a licensed CT Salesperson License #RES.0783448 with William Pitt Real Estate LLC License # REB.0751698. His office is located at 112 Federal Road,Danbury CT 06811.

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Rainmaker
1,315,185
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Wise post...needs to be a featured one.

Sep 27, 2012 05:22 AM #1
Rainmaker
378,436
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Hi Jonathan.   I hadn't thought of it in exactly this way before...but this makes total sense.   Especially the appraisers!  That's where the buck ultimately stops!

Sep 28, 2012 02:19 AM #2
Rainer
479,464
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Amen on all elements. I always recommend getting an appraisal before listing the property, that validates the asking price or marketing strategy to employ.

Sep 28, 2012 03:46 AM #3
Rainer
84,237
Brad Baylor
ERA Coup Agency - Milton, PA

Jonathan - Great post!  I have a seller right now who won't budge from his listing price even though I told him from the very beginning that it was over-priced.  It's been on the market for nearly 6 months and I've had 5 showings.  Can't get a price reduction, so I'm about ready to cut this relatrionship loose!

Sep 28, 2012 05:04 AM #4
Rainer
151,753
Pam Ruckriegel
Louisville Real Estate Pros - 502-435-5524 - Louisville, KY
Negotiating the Best Deal for You!

Very nice post.  I do disagree with getting an appraisal before listing the property unless it is a very unusual circumstance.  Buyers still want to pay less than the appraised price, no matter what number that is.

Sep 28, 2012 05:28 AM #5
Rainmaker
1,543,435
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

I always use the 'I have to sell it 3 times close'. Once to my peers, once to the buyer & then again to the buyers lender.  The lender being the hardest one.

Sep 28, 2012 07:13 AM #6
Rainer
333,502
Frank Castaldini
Compass - San Francisco, CA
Realtor - Homes for Sale in San Francisco

Ah yes..the appraisers sometimes need some help with the price.  Good comps and pointing out value is sometimes a necessary sales effort.  Thanks for the great article.

Sep 28, 2012 04:11 PM #7
Rainmaker
542,519
Jon Quist
REALTY EXECUTIVES TUCSON ELITE - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

Around here the appraisal is the problem, mostly with lenders who use HVCC pool appraisers. Like anything else in life, you get what you pay for. And with a low bidder usually you wind up with a DFT, sadly.

Sep 28, 2012 05:57 PM #8
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Great advice, so many sellers are holding out for that one buyer who loves it so much that they are willing to overpay, maybe once they realize that they have to convince a half dozen people that it is a reasonable price they will just sell it for what it is Really worth.

Sep 28, 2012 10:45 PM #9
Rainmaker
843,657
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team
Hi Jonathan great post. We agree that all parties need to be comfortable with the deal
Sep 29, 2012 12:00 AM #10
Ambassador
675,930
John DL Arendsen
CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS - Leucadia, CA
Crest Backyard Homes "ADU" dealer & Contractor

You can do all the right things for all the right reasons but in the end it's all about the appraisal.

Sep 29, 2012 03:40 AM #11
Rainer
293,425
Nan Jester
Exit Real Estate Gallery Jacksonville Beach, FL - Jacksonville Beach, FL
Realtor, Exit Real Estate Gallery

Great take on the subject.  It is always good to look at things like pricing as many ways as possible because you can better sell the asking price to seller, which is your first real hurdle

Sep 30, 2012 02:18 AM #12
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Rainmaker
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Jonathan Hall

Realtor - Danbury,CT Area Real Estate~203-417-0523
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